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Spectrum regulations due soon

Candice Jones
By Candice Jones, ITWeb online telecoms editor
Johannesburg, 14 May 2010

After a four-year wait, the Independent Communications Authority of SA (ICASA) is on track to release governing the awarding of scarce spectrum by the end of the month, it says.

Local telecoms providers had all but given up hope of ever seeing the regulations on spectrum in the 2.6GHz and 3.5GHz bands, which many of the local telcos need or want to develop WiMax and LTE networks.

However, the news that the regulator has committed to publishing the regulations by the end of the month will likely renew the operators' vigour in planning for new technology roll-outs.

The first sign of hope that spectrum will be made available to telecoms operators was last month when the Department of Communications (DOC) released its spectrum . The policy has likely given ICASA a point of reference for its own process, and may be the reason it has now committed to month-end.

The department's document is hard on spectrum hoarders, mandating the regulator to enforce a “use it or lose it” policy. This will be a blow for state-owned business Sentech, which is sitting on a heap of unused spectrum.

ICASA chairman Paris Mashile has also said Sentech will have to make use of its spectrum in the 2.6GHz band, or face losing it.

Sooner than later

In March, ICASA put the auction process out to tender, and while the regulator has not clarified whether it has chosen an auctioneer, it is likely the process will speed ahead once the regulations are finally on the table.

In 2006, several local ISPs were given a temporary licence to implement WiMax test sites across the country. However, these licences expired in 2008 and local ISPs have been sitting on technology infrastructure they implemented almost three years ago.

Local analysts say the spectrum regulations would be welcome, but many are reluctant to speculate about what will happen once the regulations are published.

Next in line

Meanwhile, local companies are waiting with baited breath for the promised regulations, and many of the roughly 300 converted value-added network service providers would kill to get their hands on spectrum.

Allied Technologies, which spearheaded the battle to allow the alternative operators to build their own networks, has noted that, should spectrum be made available to it, it would build a fully-fledged telecoms network.

Alternative providers are not the only operators that are out for spectrum. Cell C, MTN and Vodacom will also want to get their hands on the allocations, specifically for LTE-based networks.

Cell C and Vodacom are frantically preparing for the possibility, with Cell C building an LTE-capable network, and Vodacom looking to shed its iBurst share. iBurst already has spectrum in that band, which would leave Vodacom out of the running for the auction, under the current draft regulations.

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